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£1million warehouse is ingredient for bakery success

April 1, 2004

A Durham based bakery supply company has announced major expansion plans that will see it increase turnover from £22million to £30million over the next 12 months.

BAKO Northern, which supplies independent bakers with ingredients such as sugars, fats, dried fruits and pie fillings, is expanding further into Scotland and has purchased a factory unit in Cumbernauld near Glasgow for £1million.

BAKO Northern acquired the building and the surrounding site in February this year, and it is expected it to be fully operational by the 4th May 2004, creating up to 16 local jobs.

BAKO Northern was established in 1961 and supplies 1,200 bakeries. The business, which currently employs 75 people in Durham, supplies a wide range of leading brand products, as well as a range of own label goods.

John Mason, Chairman at Bako Northern said: “Though our traditional market is the North East, Yorkshire and the East Midlands of England, we do actually cover quite a big area and have 1/5 of our business in Scotland already. We believe we can add significantly to this by setting up a dedicated distribution centre in the country.

“We have invested heavily in Scotland. The factory was purchased a few months a go but since then we’ve been working hard fitting it out and ensuring it will be completely ready in time for the start of May. We have also been busy recruiting and training new staff.

“BAKO Northern will continue to serve all existing bakeries in the same way as it always has, it’s just that in about 12 months time we’ll be working with substantially more of them. The good news for our current customers is that the BAKO buying group will grow as a result and we’ll be able to be even more competitive with our prices.”

Our Sunderland office are BAKO Northern’s accountants and advised the company on the recent expansion.

Martin Johnson, partner in Sunderland, said: “BAKO Northern has spotted a considerable growth opportunity and this is certainly a very exciting time. The business is a tremendously successful in the North East and there is absolutely no reason why it can’t be equally so in Scotland.”

BAKO Northern operates as a cooperative and along with four other BAKO cooperatives operating in the UK, they form one of the largest buying groups for the UK bakery sector.